Which Mag-7 Stock, Apple or NVIDIA, Should You Buy for Tariff Relief?

Group 1: Apple Inc. (AAPL) - Apple faced potential supply chain disruptions due to President Trump's tariffs on Chinese goods, but received tariff exemptions for electronic devices, alleviating some cost pressures [1][5] - Apple plans to produce over 30 million iPhones in India to meet a significant portion of American demand, which represents one-third of global demand [2] - Despite tariff relief, Apple continues to manufacture the upcoming iPhone 17 in China, making a quick shift to India challenging and potentially leading to retaliation from China [3][4] - A complete separation from China is unlikely as Apple relies heavily on Chinese manufacturing, and there is a lack of necessary skills in the U.S. for iPhone production [4] - The temporary nature of tariff relief poses risks to Apple's near-term profitability, with potential price increases for iPhones if tariffs are reinstated [5] - Given stagnant revenues and tariff uncertainties, Apple stock is considered overvalued with a forward P/E ratio of 27.4, compared to the industry average of 26.05 [6] Group 2: NVIDIA Corporation (NVDA) - NVIDIA also benefited from tariff exemptions on critical chips produced in China, with a 90-day pause in tariffs currently in effect [7] - The company is well-positioned for long-term growth due to increasing demand for GPUs and rising AI infrastructure spending [10] - NVIDIA's Blackwell and Hopper chips are in high demand due to their superior AI capabilities, and its CUDA software platform is preferred over AMD's ROCm [11] - Major cloud computing companies are investing heavily in AI data center infrastructure, which is expected to benefit NVIDIA [11] - NVIDIA stock is currently more affordable with a forward P/E ratio of 25.18, compared to the Semiconductor industry's 28.4, leading to a Zacks Rank 2 (Buy) [12]